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Lukas Sosnicki, Los Angeles-based member in Dykema’s Financial Services Group, was tapped by DS News to discuss the Spokeo Inc. v. Robins decision in the article, “Servicers, Pay Attention to Supreme Court’s Ruling.” The complex case involved a class-action lawsuit by consumers who had been affected by incorrect personal details in the Spokeo public data website. The Supreme Court, stating that the appeals court had not clearly determined if the plaintiffs were sufficiently harmed to qualify for standing in the Supreme Court, vacated and remanded the case to the 9th Circuit Court of Appeals.

Because a conclusive decision from the Court was not forthcoming, Sosnicki sees this as a reprieve of sorts for mortgage servicers who rely on (possibly faulty) credit reports about potential borrowers, but also provides no reassurance that future court cases will establish the nature of “intangible harm” to individuals who are denied a loan due to incorrect public data. Sosnicki warns that until similar cases are decided more clearly in the court system, lenders will not have definitive guidelines.